- More than 70% of Binance traders maintain long positions in XRP, demonstrating firm belief in its value.
- XRP’s price could surge by 30%, potentially reaching $2.60 if it stays above $2.
- XRP is in legal doubt, but bull formations indicate potential breaking above $2.22.
XRP is seeing significant bullish momentum as traders heavily back its future growth. Over 70% of Binance traders are holding long positions on the asset, indicating strong confidence in its price movement. According to crypto analyst Ali Martinez, if XRP maintains levels above $2, it could surge by 30%, reaching $2.60. However, the strong long position buildup has also raised fears of future market volatility and price oscillations.
XRP Faces $1.21M Liquidations Shock
Martinez points out the 4-hour long/short ratio for XRP at 2.37, with long positions overwhelmingly surpassing short positions. However, it also implies a crowded trade, which could lead to sharp price swings if market sentiment shifts unexpectedly. Currently, 70.33% of XRP holders are predicting a price increase, while only 29.67% are expecting a decline, indicating broad optimism.
XRP has recently spiked by more than 6%, boosting optimism in the market. The analyst, however, has hinted at a potential price correction to the value of $0.65 at a predicted 70% chance. Despite this, the analyst suggests that a breakthrough of key resistance levels could propel XRP to new highs, potentially reaching double digits in the next few weeks.
EGRAG CRYPTO has identified the Ascending Broadening Wedge in the current price movement of XRP, indicating upcoming volatility. XRP must close higher at $3.50 to confirm a bull run. If the asset fails to maintain itself above $5 during a future rally, it may fall back to $1.90 before trying once more. A successful break above $5 could propel XRP to $6, and further breakthroughs might lead it to $17.50 within weeks.
In the meantime, XRP whales transferred a staggering $572 million in XRP, keeping speculations in the market regarding upcoming price action in motion. Despite the optimism, caution is necessary, as the market is susceptible to strong corrections, especially considering the extremely high long positions. Recent statistics from Coinglass indicate XRP experienced $1.21 million in liquidations in the previous 12-hours. The price of XRP stands at a point of $2.09, depreciating by 2% in the last 24 hours.
Bullish Pattern Targets $2.22 Breakout
Investor sentiment is highly correlated with continuing legal proceedings, specifically the Ripple vs SEC litigation. A latest emergency filing in the matter can potentially exert a strong impact on the price of XRP, propelling the same higher if a favorable decision is reached. A positive outcome in the case could push XRP past current resistance levels, leading to a price rally. The delays from the SEC have dampened market sentiment, contributing to XRP’s stagnant price in the last few weeks.
In contrast to the legal uncertainty, technical analysis reveals both bearish and bullish formations. On lower time horizons, XRP has established a bullish inverted head and shoulders formation, pointing toward a break if it rises above the $2.22 barrier. On the daily chart, the bearish head and shoulders structure remains in position, with the support of the 200 Exponential Moving Average keeping XRP above its crucial levels.
Read More: XRP Consolidates at $2.00: Breaking $2.23 Could Lead to a Huge Surge
